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United Kingdom

UK pensions: Lords’ LGPS reforms scrutiny; IHT extended to pensions; FAS/PPF pre-1997 indexation campaign; LGPS Advisory Board urges phased implementation; DWP to refine lump-sum tax rules

Published on: 15 January 2026

Published by a LexisNexis Pensions expert
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  • Pension Schemes Bill
  • Taxation of pensions
  • Public sector pension schemes
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Pension Schemes Bill

Pensions Schemes Bill makes progress during early stage of Grand Committee examination despite strong reservations on LGPS reforms

On 12 January 2026, the House of Lords Grand Committee (Grand Committee) commenced its line-by-line review of the Pension Schemes Bill. The first sitting centred on Chapter 1, dealing with the Local Government Pension Scheme (LGPS), with particular attention to Clause 1 (asset pool companies) and Clause 2 (asset management). In the event, all amendments discussed that day were withdrawn, and both clauses were formally approved without alteration, after detailed discussion on the day. Even so, the exchanges exposed broad, cross-party anxiety over the scope of ministerial powers, the dependence on delegated legislation, the safeguarding of fiduciary duty, and how far Ministers might shape pension investment.

On 14 January 2026, the Grand Committee maintained its attention on Chapter 1 of the Pension Schemes Bill, agreeing Clause 6 (mergers of funds), Clause 7 (amendments of the 2013 Act relating to scheme regulations) and Clause 8 (interpretation of Chapter 1)...

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